1. P-5 FILINGS AND FINANCIAL SECURITY
RAILROAD COMMISSION OF TEXAS
P-5 FILINGS AND FINANCIAL SECURITY
PRESENTERS: MARIA CASTRO / JENNIFER GILMORE

2. TOPICS P-5 Organization Report Revised September 2011
Financial Assurance Requirements
P-5 Filing Fees and Surcharge
Surcharge effective May 2012

3. P5 ORGANIZATION REPORT Requirements: Oil & Gas & Pipeline Operators:
Natural Resources Code, Sec
Oil & Gas Statewide Rules 1 & 78
Master Meter & Distribution Systems (Safety Division):
Utilities Code, Sec
Pipeline Safety Rule 51/Oil & Gas Rules 1 & 78

4. SUPPLEMENTAL FORMS P-5O: Officer Listing
P-5A: Non-Employee Agent Listing
P-5PB(1): Individual Performance Bond
P-5PB(2): Blanket Performance Bond
P-5LC: Letter of Credit

5. P-5 Form

6. Form P-5 (Organization Report)

8. P-5O Form

9. Form P-5O (Officer Listing)

10. P-5A Form

11. Actual Person name not company
Form P-5A (Non-Employee Agent Listing)
Actual Person name not company

12. Original signature by P-5 officer required

13. Key Points
Entities requiring SOS registration must be chartered prior to submitting P-5 application.
Organization name must match SOS filings, down to and including punctuation.
IF organization name is longer than 32 characters, abbreviation will be required to accommodate RRC spacing limitations. This will not effect the organization’s chartered name.
address is not required, but if provided available to the public.
Officer titles must match plan of organization. EX: 1) Corporation – President, Secretary, Treasurer 2) Limited Partnership – General Partner 3) Limited Liability Company – Manager/Member etc..
If an officer is a company, must provide officers for listed company.
Only acceptable form of ID for a sole proprietor is a SSN.
All forms of ID are redacted and not available to the public.
P-5 officer signature is required to assign non-employee agent on form P-5A. 13

14. Financial Requirements
Financial Security required for most organizations.
Option 1 - Individual Performance Bond, Letter of Credit or Cash Deposit
Option 2 - Blanket Performance Bond, Letter of Credit or Cash Deposit

15. Oil & Gas Non-Well Operators
Exempt if your only operations are:
Master Meter / Gas Distribution Center
Purchaser
Directional Surveyor
Salt Water Hauler
Approved Well Plugger
Approved Cementer for Well Plugging
(Well plugging requires Approval by Fld Ops)
Service company for well stimulation activities
$25,000 if you have any other activities

16. Individual Performance Bond, Letter of Credit or Cash Deposit
Option 1
Individual Performance Bond, Letter of Credit or Cash Deposit
Only available to well operators who have no activity other than wells
Amount determined by multiplying the aggregate depth of all wells (active, inactive, injection, producer, etc.) at $2.00 per foot.

17. Blanket Performance Bond, Letter of Credit or Cash Deposit
Option 2
Blanket Performance Bond, Letter of Credit or Cash Deposit
Available to all operators
Amount determined by the total number of wells (active, inactive, injection, producer, etc.)
1 to 10 wells $25,000
11 to 99 wells $50,000
100 wells or more $250,000
For operators without wells who are required to file FA, $25,000.

18. Bay and Offshore Wells
Statewide Rule §3.78 amended to require additional financial security for operators of Bay and Offshore wells
Calculated by Base amount + Entry Level amount + Non-Producing Amount
Presumed Plugging Cost for Bay Well $60, / Offshore Well $100,000.00

19. Bay & Offshore Wells
Example: Operator A has 15 wells, of which 8 are bay wells. 4 of these wells are non-producing.
Base: $50,000
Entry Level: $60,000
Non-Producing amount: $180,000
Total: $290,000

20. Drilling Permits
Effective Statewide Rule 78 amended requiring financial security as a condition of the issuance of permit to drill, recomplete or reenter a well.
Required amount: Option 1 or Option 2
Permits cannot be issued to “unbonded” operators.

21. P-5LC (Letter of Credit)

22. Effective date MUST be current date.
P-5LC (back page LOC)
Effective date MUST be current date.

23. (Individual and Blanket Performance Bonds)
P-5PB1 and P5PB2
(Individual and Blanket Performance Bonds)

24. (Back page of P-5PB1 and P-5PB2)
Date MUST be affixed by principal.

25. Filing Fee and Surcharges
Filing fee required for annual P-5 renewals and new P-5 filings
Statewide Rule 78 amended to impose a surcharge of 150% to filing fees
Notification to industry sent out February 2012
Effective May 1, 2012

26. P-5 Filing Fee Amount based on the following four components:
Number of wells operated
1 – 25 wells $750
26 – 100 wells $1,250
101 wells or more $2,500
Natural Gas Pipelines (one or more): $562.50
Pipelines other than Natural Gas (one or more): $1,562.50
Facilities and/or Service Activities: $500 to $750
(One single fee regardless of quantity or variety)
Operator with no activity or a new filer is $750.

27. Facilities & Service Activities
Oil & Gas Regulated activities other than pipelines or wells.
$750 if the activities include only:
Pollution Cleanup Contractor, (CLENUP)
Directional Surveyor, (DIRSUR)
Approved Cementer for plugging wells, and/or (PLUGGR)
Moving/Storing Crude or Condensate. (TRANSP)
Approved Cementer for Well Plugging (CEMNTR)
$1,250 if the operator has any other Commission-regulated facilities or service activities, including (but not limited to):
Commercial Facility, (COMFAC)
Gas Plant, (GASPLT)
Reclamation Plant, (RECLPL)
Refinery, (REFINE)
Saltwater Disposal P18 authority, and/or (SWDP18)
Waste Hauler authority. (WHAUL)
Service Comp. for Well Stimulation/Hydr. Fracturing Activities (WLSTIM)

28. Filing fee and Surcharges
Statewide Rule 78 amended to impose a surcharge of 150% to filing fees
Effective May 1, 2012
Notification to industry sent out February 2012

29. Auto P-4 Changes
Name change P-5 Large acquisitions of property Same Operator change
25 or more leases
Operator change Auto - Request letter requires signature of previous P-5 officer and acquiring P-5 officer
Same operator change Auto – Letter can be signed by company authorized individual
Questions contact: Linda Turk (512) 29

30. RRC Online System
File a SAD (Security Administration Designation) Form
Two types of accounts:
Security Administrator Accounts
Filer Accounts

31. SAD Form (Security Administrator Designation For Electronic Filing)

32. SAD Form (Security Administrator Designation For Electronic Filing)
Complete address

33. Legible and correct
6 characters

34. Helpful Links Railroad Commission Website: http://www.rrc.texas.gov
Expanded Website Access (EWA) – P5 Query:
(data updated nightly)
P-5 Renewal Status Query:
HB2259/HB3134 Information (Inactive Well requirements):
Lost UserID and Password Help

35. For any questions the P-5 Unit can be contacted by phone or email.
Contact Information
For any questions the P-5 Unit can be contacted by phone or .
P-5 Main Line (512)